Hospital Budget Essay

Budget management analysis is used by mangers as a tool and helps determine that all resources available are being used efficiently. The budgets are determined yearly and are based upon the previous year’s budget and variances. This paper will discuss specific strategies to manage budgets within forecast, compare five to seven expense results with budget expectations, describe possible reasons for variances, give strategies to keep results aligned with expectations, recommend three benchmarking techniques, and identify those that might improve budget accuracy, and justify the choices made.

Develop a financial plan to feasibly meet our budget constraints (KMAONE, 2013). In order to maintain an in-house

The role of finance in Health Care Systems, Inc. as a regional not-for-profit hospital relates to both the accounting and financial management aspects of the business. Facets of both accounting and financial management are intertwined with maximizing productivity by way of managing and analyzing financial operations to ensure resources are being utilized properly (Gapensiki, 2013). The divulgence of financial reports to managers and investors will aid in the development of plans and budgets for future growth, assess acceptable levels of financial risk, manage contracts appropriately and make decisions related to capital investments allowing the organization to expand service offerings thereby demonstrating greater value in the community. Operating as a not-for-profit entity requires that the hospital operate exclusively in the interest of the public for a charitable purpose. Through understanding who the primary third party payers

We operate a small privately owned clinic so our extra budget requirements are less than that of some larger facilities. To change the current procedure and protocol for assessing risk, we have created a budget to learn more about how we can help prevent and handle our geriatric populations fall risks and train the community as well as our staff. We have established a budget for continuing education for our nurse practitioner, who in turn will relay that training to our medical assistants and staff in our clinic. We have also created additional tools, and patient information forms and brochures, that will require additional funds to produce.

Effective financial management is the basis of thriving health care organizations. Organizations must make good investment decisions based on objective analysis (Healthcare Financial Management Association [HFMA], 2005). Integration of financial management principles provides decision makers with guidance to make capital decisions maximize mission-based benefits at effective costs (HFMA, 2005). An operating budget is the statement of profit and loss for the entire organization. Various health care entities prepare operating budget for the following year for discussion and approval by top management (Academic Writing Tips, 2011). At the end of the year, departmental managers provide an account for the previous year’s

Funding for public hospitals in Australia is mainly based on activity, known as Activity Based Funding (ABF). This is based on the actual quantity of services delivered to patients and aims to provide revenue based on the ‘efficient’ cost of delivering the services. Under this arrangement, the financial contribution made by the Commonwealth and the States/Territories for public hospitals’ activities and services is based on Australia DRG classifications, price weight and the National Efficient Price (NEP) which is determined by IPHA. The NEP is a benchmark to give government guidance about the level of contributions that meet the average cost of acute care service provision in Australian public hospitals. The price is expressed as dollars per NWAU because its determination is based on the average cost of a National Weighted Activity Unit (NWAU) projection after deducting the Commonwealth expenditure for other programs. NWAU is a unit expressed to measure health service activity. The NWAU values vary with clinical complexity, intensity and cost of hospital service activities.

The pro forma statements and budgets were instrumental in determining what additional measures needed to be taken to ensure progress within the company. By reviewing the pro-forma statements I was able to determine that I needed to raise the price of my product due to the fact that the target markets had indicated what they would pay for such product and the cost of production was over whelming the income received from sales. After the first quarter I was able to decide that changes needed to be made to not only the price of each product but additional products needed to be added to meet the needs of specific target areas. I was also able to determine by analyzing the budget

Over the past years, “the healthcare sector of our economy has grown rapidly”, (Cleverley, Cleverley, & Song, 2011, p. 10). In order for healthcare organizations (HCOs) to survive in our financially changing healthcare environment, they must be economically stable. The understanding of the effects of economic developments on finance is more important than ever. By understanding the financial and economic implications of our economic system, healthcare organizations will be capable of securing economic stability. When trying to stabilize financial security in healthcare capital planning is the best approach. If the working capital is not managed efficiently, the flow of money gets choked, raw material supplies interrupted, wage payments delayed,

In the health care world finances play a significant role in the quality of care rendered to the consumer. There is no health care facility that is the same when it comes to their financial management because it is needed both internally and externally to ensure that it runs properly. Today’s health care field consist of either not-for-profit organizations, for-profit organizations and governmental, (Gapenski, 2008).

After preparing the operating budget and variance analysis for Peyton Approved, for the quarter, which spans from July to September 2014. With that information, this paper is to discuss the operating budgets and variance analysis for the company Peyton Approved. This is essential for a business to predict the company cost will incur in future financial periods. An operating budget by definition, consist of short-term financial plans used to coordinate goals that achieve the short-term goals for the company to be successful (Miller-nobles, Mattison, Matsumura, & Ella Mae, 2013, p. 1142).

The major difference between healthcare finance terminology and business finance terminology is that these terms focus on factors unique to the health services industry. For example, the provision of health services is dominated by not-for-profit or¬ganizations (such as ours), which are inherently different from investor-owned businesses. Also, the majority of payments made to health¬care providers for services are not made by patients—the consumers of the services—but rather by some third-party payer (e.g., a commercial insurance company or a government program). Even the purchase of health insurance is dominated by employers rather than by the individuals who receive the services. These terms emphasize ways in which the unique features of the health services industry affect financial decisions. The healthcare industry is a service industry. It is not in the business of manufacturing, say, widgets. Instead its essential business is the delivery of healthcare services. It may have inventories of medical supplies and drugs, but those inventories are necessary to service delivery, not to manufacturing functions. Because the business of healthcare is a service, this overview of key healthcare terminology will focus on the practice of financial management in the services industry.

Budgets serve five main purposes; planning, facilitating communication and coordination, allocating resources, controlling profits and operations and evaluating performance and providing incentives. The budgeting process requires both technical and interpersonal leadership skills to achieve each of these purposes effectively. The director’s memo demonstrates several short comings in the budgeting process. The director instituted the “responsibility accounting system” as a means of evaluating performance. However, the DPW director has not consulted Sam in the budget process. Sam understands that his total expenditures are impacted by relatively unpredictable events that contribute to an uncontrollable element of his cost. The

Understanding the financial analysis of healthcare organizations is strategic to the organization by understanding their stand on the amount of revenue they gain, healthcare assets, and their financial goals. This paper will provide a comparison on the performance of financial analysis of several California Healthcare Organizations such as; Scripps Health, Palomar Health, Sharp Healthcare, and Tri-City Healthcare. The four healthcare organizations will be illustrated with an overview about what the organizations have been doing financially , where they have been growing financially, and what have they accomplished over the past year from examining their financial statement. As the nation’s healthcare model continues to evolve,

You are an IT Director at a medium-sized urban hospital with 160 beds and 1,500 associates. You are a full-service hospital with a typical list of departments to include multiple ICUs, mother & baby, emergency services, radiology, oncology, surgery, etc. You are considering a new EMR application because the vendor of your current EMR has lost market share, failed to pass meaningful use attestation, and is losing market share with unpredictable future stability state. You are considering a cloud solution as the potential network architecture & strategy.

Most entities and organization create budgets as a guide for controlling its spending, prediction of profit, and it expenditure as they progress toward a set goal. Budget involves pulling resources together to achieve a specific goal. According to Gapenski (2006), budgeting is an offshoot in a planning process. A basic managerial accounting tool use in holding planning and control functions together is referred to as set of budgets (p. 255). One major setback manager or budget developer encounter is trying to design a future, a process that cannot be created with the precision just right. This article highlights some financial management